I hesitated to write about it because everybody is contributing their twopence worth, some of it very worthy and constructive, some of it inarticulate rage. I’ve got some rage myself hopefully not all inarticulate.
I was interested in the news report this morning which stated that North Ayrshire and West Dunbartonshire look like the authorities who will be least well placed to recover from government cuts in Scotland according to a report by Experian. The Sunday Herald were interested too and contacted me today for my take on how I’ll be affected as someone who runs a micro business in West Dunbartonshire. So writing from that perspective I may have something to offer the debate
A micro business by the way, is one which employs fewer than ten people and turns over less than two million Euros. Something like one third of the work force in Scotland earn their living in such concerns. Usually these are businesses where the owner is involved in the day-to-day running of the operation. He/she will know their employees, their families, their birthdays, likes and dislikes, strengths and weaknesses.
The oft quoted “SME” (small to medium sized enterprise) covers a large disparate range of companies. A small business is defined as one employing more than ten but fewer than fifty employees and having a t/o off less than £10m Euros. A medium sized business is one which employs between 50 and 250 people with a t/o of less than 50 million Euros.
Often when people refer to SMEs they actually mean a micro business. Government sources and commentators have been talking a lot about both over recent days. Many of them have been saying that the estimated 500,000 jobs expected to be lost in the public sector will be replaced by the private sector recruiting to the tune of an EXTRA two million jobs over the short to medium term.
Excuse me, but what fucking planet are these people on?
Did I miss the incentives to be offered to small employers in yesterday’s deliberations? Just what was the stimulus package setting out how the economy will be set on the road to recovery? Silly me, it was cuts, cuts and more cuts.
I did notice that
Cloud Cuckoo Land Incorporated the European Parliament has decided to grant maternity leave on full pay for a whole year.
Just keep a look out for the survey that finds that surprisingly employers seem to be taking on fewer women of child bearing age. QED.
Anyway, lets get back to West Dunbartonshire and I’ll tell you why the apparent strategy (or vain hope if you like) of the private sector brimming with job vacancies ain’t going to happen.
Public sector job losses will mean fewer wage packets in the local economy. A tragedy for the folk losing their jobs and also for the businesses which rely on their custom to keep their costs covered and employees employed.
Those people who rely on benefits and are about to have those benefits cut will suffer financial hardship. Not only that they will have less money to spend. That’s right you know what I’m going to say next, money which is spent in local shops and businesses.
So fewer wage packets, lower benefits and less money in the local economy.
Business turnover down.
At which point do these fucking muppets, Cameron, Osborne, Alexander et al think that these businesses are going to suddenly employ all the folk who have been laid off, and not only them but a fair few of the ones on benefits as well?
In West Dunbartonshire trading has been difficult for a very high proportion of the last 25 years.
My business and those like us have, for two generations operated in an area of high unemployment, low wages, crazy decisions by the local authority, and now it would seem, a shattering blow of cuts which identifies the area immediately as the second least likely to recover.
"Bravo old chap! that's Dumbarton really fucked now!"
So Mr Osborne,
West Dunbartonshire is ranked poorly partly because it has more businesses struggling to pay their bills, even though it has average business start-up rates. (source: the Experian Report)
The area was struggling, even in the good times.
Your prescription of job losses and benefit cuts as well as being personal tragedies also further mitigate against a whole community literally dying for the oxygen of some stimulus or investment.
And then you’ve got the fucking cheek to say the job losses won’t be that bad because the private sector is somehow going to magic up thousands of jobs whilst they struggle to pay the rent.
“We’re all in this together”
Filed under: Money and Finance, Rant | Tagged: coalition spending cuts, george osborne, north ayrshire, west dunbartonshire | 9 Comments »